High Food Prices Trigger Changes to Fair Trade Coffee

Food prices are no doubt sky rocketing and the impact is being felt around the globe. And foods like coffee, more specifically Fair Trade certified, are feeling the pains as well, according to Food Navigator. Read on to see how Fairtrade International (FLO) is reacting to high food prices.FLO has increased required price gaps for Fair Trade coffees as the cost of coffee commodities sees its highest prices since 1977. This reduces the sting of high food prices for Fair Trade certified farmers that have had trouble making ends meet as a result of poor harvests and farmers that had signed price contracts before food prices hit their record highs earlier this year.

FLO has decided to amend its coffee standards to bring greater stability to Fairtrade coffee supply chains, ensure greater fairness in market gains and protect farmers when prices fall. The changes come into effect for contracts signed on or after 1 April this year.

The cost of coffee has gone up in response to both poor harvests and the fear of poor harvests because a decrease in the amount of the commodity means an increase in the price on the market. Increasing the set price paid to farmers is crucial to ensuring that farmers continue to be willing to sign fair trade contracts which ensure better wages as well as stricter environmental standards.